Oklahoma AG Examines Pension Fund Investments

Thursday, July 28th 2011, 11:26 pm
By: News 9

Havonnah Johnson, News 9

OKLAHOMA CITY -- The attorney general is launching an investigation into Oklahoma's pension investments based on fraud found in California, Virginia, and Florida. Those states recouped 200-million dollars after investigating pension practices. Teachers, police officers and firefighters are among the Oklahomans who may have been ripped off.

"We need to ensure that they are invested right and we are getting all the returns we deserve. Market volatility is something we all expect when we look at long term growth investments, but having fraud or deceptive practices is something that is not expected or accepted," said Rep. Randy McDaniel.

Attorney General Scott Pruitt said about 80 percent of the state's investments involve national companies.

"It's that 20 percent on the international investment side that seems to have caused some concern as to how those funds are managed as they come back in the portfolio upon liquidation. My office and the speaker, the representative, the legislature and the governor will make sure that we are made whole as it relates to the harm we have incurred if in fact we did," Pruitt said.

Pruitt's office sent letters to custodial banks on behalf of Oklahomans Thursday. A bi-partisan committee will investigate potential fraud in four studies this fall. Representative McDaniel believes the state will get back some money and he hopes it is seven figures or larger. The investigation should wrap up in mid–October.